Service Tax Credit on Loan Processing Charges

[akhilesh shrivastava]

Dear Sir/Madam,

My query is as under :

How to claim service tax credit on Loan processing charges? Whereas bank is not giving any service tax bifurcation in it's statement. Than what should we do? Which option is best for us: First prepare a statement in which service tax portion separated from bank charges and submit it to the bank for its confirmation or Second only bank statement is sufficient to take ST claim .

Further, can we take service tax credit on bank charges related to the fy 2013 in the current period. What is the rule in this regard. Pl advise.

With Thanks,

AI Summary

Claiming Service Tax Credit on 2013 Loan Processing Fees Not Possible Due to Rule 4(7) One-Year Limit. A participant in a discussion forum inquired about claiming service tax credit on loan processing charges when banks do not provide a service tax breakdown. The consensus among respondents was that credit for service tax paid in 2013 cannot be claimed due to a one-year limitation per Rule 4(7) of the Cenvat Credit Rules, 2004. It was advised to prepare a statement separating service tax from bank charges and have it certified by the bank or a Chartered Accountant. Future transactions should ensure such documentation is obtained promptly to claim credits within the allowable period.